Has Kogan reached rock bottom?
Appears to be a bit of support at the $10 mark - double bottom perhaps? Not that I'm much of a chartist. Commentary suggests KGN 5th most shorted stock at the moment....? The fundamentals seem sound enough and am wondering whether this is an opportunity to top up or whether more pain to come. I still believe this is a long term prospect, but whther this is the best use of capital is the question.
I guess the other question(s) is who's selling and why, when the fundamentals appear to be ok...?
Here's the commentary from Kogan this morning - my point being that I don't know what more a company has to do to appease the market - seems to me like there's some fookery afoot! (not paranoid, honestly, but I'm sure eveyone's out to get me :-) )
I will let the news sink in for a bit before I do a valuation - there does appear to be some questions, but as always that appears par for the course where Kogan is concerned.
Kogan.com passes three million Active Customers and grows Gross Sales by over $300 million in the half
1HFY21 Highlights across the Kogan Group:
Kogan.com Limited (the Company; Kogan.com; ASX:KGN) today announced financial results for the half-year ended 31 December 2020 (1HFY21).
After a record breaking Black Friday trading period, with 7 of the 10 biggest trading days ever occurring within the period surrounding Black Friday, the Company reported Gross Sales of $638.2 million, up 97.4% on prior year (1HFY20: $323.4 million), and Revenue of $414.0 million, up 88.6% on prior year (1HFY20: $219.5 million).
Gross Profit was $112.9 million, up 126.2% on prior year (1HFY20: $49.9 million), which reflected an increase in Gross Margin of 4.5pp to 27.3% (1HFY20: 22.7%). Adjusted EBITDA increased 184.4% to $51.7 million (1HFY20: $18.2 million), NPAT grew 164.2% to $23.6 million (1HFY20: $8.9 million) and Adjusted NPAT increased 250.2% to $36.5 million (1HFY20: $10.4 million). Adjusted Earnings per Share grew 211.7% to $0.35 per Share.
During the period the Company acquired 100% of the profitable, fast-growing, online retailer Mighty Ape for a headline purchase price of AUD $122.4 million. Mighty Ape is an award winning New Zealand based online retailer, with a focus on gaming, toys and other entertainment categories. Mighty Ape is progressively being integrated into the Kogan Group.
As at 31 December 2020, the Company had cash of $79.0 million post Tranche 1 of the Mighty Ape acquisition in December 2020, with $1.4 million of the Group’s debt facility drawn within Mighty Ape. The Company ended the period with inventories of $225.3 million, which comprised $72.6 million of inventory in transit and $152.7 million of inventory in warehouse. This reflects the Company’s investment over the course of the half in inventory in order to meet growing customer demand — particularly of Exclusive Brands, and the internal projections of the Business of future demand from the growing customer base. More than 99% of Kogan.com and 92% of Mighty Ape inventory in warehouse at 31 December 2020 was less than 365 days old.
Following the strong results in the first half of the financial year 2021, the Board is pleased to have declared an interim Dividend of 16.0 cents per Share fully franked, which represents year-on-year growth of 113.3%.
Don't understand why share price is being so badly hammered at the moment - KGN has everything going for it at the moment, very positive statement in January. Time will tell when results come out on 26th - I'm a holder for the long term, was very fortunate to by in at less than $10, am I missing something?
I don't think it will ever be like Amazon but even if its half the size theirs money to be made
Is their any talk of KGN's next move (?) UK /Asia?